The Bank of England and the Bank for International Settlements (BIS) have successfully tested distributed ledger technology (DLT).
The Bank of England has partnered with the Bank for International Settlements (BIS) to create a prototype that has the potential to accelerate and reduce transaction costs in the Real-Time Gross Settlement (RTGS) systems used by central banks.
Allows Faster and Cheaper Transactions
The prototype, created simultaneously with Project Meridian, has the potential to reduce these issues by allowing faster and cheaper processes.
On 19 April, the BIS published a report on a joint pilot project with the Bank of England, called Project Meridian. According to the 44-page report, banks have successfully purchased a home in Wales and England via a synchronization network using distributed ledger technology.
According to the report, messages sent between the synchronization network and the RTGS system using APIs provide an interface that can be expanded relatively more easily than other asset classes such as currency. It is thought that this can reduce the time, cost and risks of transactions.
In March, the BIS said it had completed Project Icebreaker, which explores examples of international retail and remittance payments for Israeli, Norwegian and Swedish central banks and CBDCs.
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